Berkshire Hathaway Inc.News Release

We show below summary financial data for the fourth quarter and full
year. However, we urge investors and reporters to carefully read our
Annual Report, which has been posted on the Internet at www.berkshirehathaway.com.
The limited information that follows in this press release is totally
inadequate for making an informed investment judgment or for an
evaluation of 2017 business performance. Earnings are stated on an
after-tax basis. (Dollar amounts are in millions, except for per share
amounts).

Fourth Quarter

Full Year

2017

2016

2017

2016

Net earnings attributable to Berkshire shareholders

$

32,551

$

6,286

$

44,940

$

24,074

Net earnings includes:

Investment and derivative gains/losses

107

1,904

1,377

6,497*

Earnings impact from the enactment of the 2017 Tax Act

29,106**

—

29,106**

—

Non-operating earnings

29,213

1,904

30,483

6,497

Operating earnings

3,338

4,382

14,457

17,577

Net earnings attributable to Berkshire shareholders

$

32,551

$

6,286

$

44,940

$

24,074

*

Includes after-tax gains of approximately $2.7 billion from the
disposition of preferred stock in Wrigley and Kraft Heinz and
conversion of preferred stock of Dow Chemical. Also includes
after-tax gain of approximately $1.9 billion from the exchange of
Procter & Gamble common stock for Duracell.

**

Attributable to a one-time net benefit from the enactment of
the Tax Cuts and Jobs Act on December 22, 2017. The benefit
primarily derives from a reduction of net deferred income tax
liabilities that arose as a result of the reduction in the U.S.
corporate income tax rate from 35% to 21%.

Note: Per share amounts for the Class B shares are 1/1,500th
those shown for the Class A.

An analysis of Berkshire’s operating earnings follows (dollar amounts
are in millions).

Fourth Quarter

Full Year

2017

2016

2017

2016

Insurance-underwriting

$ (491

)

$ 548

$ (2,219

)

$ 1,370

Insurance-investment income

1,000

889

3,917

3,636

Railroad, utilities and energy
businesses

1,224

1,425

6,042

5,856

Other businesses

1,894

1,553

7,543

7,058

Other

(289

)

(33

)

(826

)

(343

)

Operating earnings

$3,338

$4,382

$14,457

$17,577

Operating earnings for 2017 are net of pre-tax underwriting losses of
approximately $3.0 billion ($1.95 billion after-tax) attributable to
three major hurricanes in the U.S. and Puerto Rico and wildfires in
California.

In the table on the prior page (which, as noted, reports after-tax
results), we give investment and derivative gains/losses a line of their
own because the amounts of these in any given quarter or year are
often meaningless.

Berkshire’s gain in net worth during 2017 was $65.3 billion which
increased per-share book value by 23% since yearend 2016 to $211,750 per
Class A equivalent share ($141.17 per Class B equivalent share).
Insurance float (the net liabilities we assume under insurance
contracts) at December 31, 2017 was approximately $114 billion.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The
reconciliations of such measures to the most comparable GAAP figures in
accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most
meaningful and useful, as well as most transparent, to the investing
public and others who use Berkshire’s financial information. That
presentation includes the use of certain non-GAAP financial measures. In
addition to the GAAP presentations of net earnings, Berkshire shows
operating earnings defined as net earnings exclusive of investment and
derivative gains/losses and the earnings impact from the enactment of
the Tax Cuts and Jobs Act of 2017.

Although the investment of insurance and reinsurance premiums to
generate investment income and investment gains or losses is an integral
part of Berkshire’s operations, the generation of investment income and
investment gains or losses is independent of the insurance underwriting
process. Moreover, under applicable GAAP accounting requirements, gains
or losses can be created when certain types of investments are
marked-to-market through earnings. In sum, investment and derivative
gains/losses for any particular period are not indicative of quarterly
business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business
activities including insurance and reinsurance, utilities and energy,
freight rail transportation, finance, manufacturing, retailing and
services. Common stock of the company is listed on the New York Stock
Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are “forward looking”
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are not guaranties of future
performance and actual results may differ materially from those
forecasted.

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